ERMUSR MISC ISSUES 07-08-2003 tElk Riv
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax 7634413099
July 1, 2003
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan C. Adams
Subject: Miscellaneous Issues
Enclosed is the packet for the July 8, 2003, commission meeting at 4:00 p.m.
Corporate Technologies did execute the site agreement to place a communication antenna
on the Jackson Street Water Tower. They will start their construction in July 2003.
At our July 9, 2002, Elk River Municipal Utilities Commission meeting, authorization
was given to install a secondary electrical system at Orono Park. This is a good
community project and help elevate some electric safety concerns with the July 4th
celebration. This has been completed for this years' celebration.
Safety camp was a success this year with 80 kids attending. We sponsored the Connexus
Safety Trailer again this year. Our Mike Thiry, assisted the Connexus personnel with
their presentation, along with presented information using one of our line trucks and did a
great job. We were requested to put on the same presentation at the Sherburne County
Fair and will be delighted to do so.
Our 1,500,000 gallon water tower was commissioned during the week of June 23, 2003.
The contractor is in the process of completing the punch list items.
Enclosed is a graph reflecting the output of our two energy city electric generation
projects in Elk River, the wind turbine and the LFG generation. Although it is politically
correct these days to promote wind energy, our LFG generation is a far better resource.
Attached is an excerpt from Pat Klaers' memo to the City Council concerning the number
and value of building permits issued in the first half of 2003. These numbers are
surprisingly high considering the economic times.
This spring, we changed the way we credit our Cycled Air Conditioning customers.
Previously it was on a$/kwh basis, where now it is a$30/year credit. For the average
residential customer, the $/kwh and $30/year were approximately equal. We are getting
some negative comments from a few customers (5 ±) who would rather stay on the $/kwh
program because of the heavy air conditioning usages. Their usage tends to be in the
2,000 kwh to 3,000 kwh/annually instead of the more normal 1000kwh/year. To the best
of my knowledge, all of the affected customers received the attached letter unless they
were inadvertently missed. Also attached is a letter sent to affected customers concerning
Connexus' whole house rate. Other customers continue to sign-up for this program.
ElkRiver Municipal Utilities May 2003 Wind Turbine Output
700
600
500
= aao I�-
300
200 II n" 1
Time In Month of May 2003
Elk River Municipal Utilities May 2003 LFG Generation Output
3000
2500
1
2000
00
n 1500 -Series1
1000
500
0
Time in Month of May 2003
3. Building Activities Update...The Building and Zoning Department has provided
the following statistics on construction activities. This data for the past five years
(number and value of the permits for residential dwelling units and the value of the
commercial/industrial permits) provides some interesting information.The first item
to note is that residential construction activity for the first half of 2003 has increased
significantly from the first half of 2002. Next, when you "do the math" the average
per dwelling unit permit value in the first half of 2003 is down slightly as compared to
the first half of 2002. It should be noted that this includes all dwelling units and not
just single-family homes.
Regarding the permits for the 206 dwelling units for the first half of 2003, the city has
issued 113 permits for single-family homes,permits for 18 twin home dwelling units,
and permits for 75 multi-family dwelling units (three to eight plexes). The 55% to 45%
ratio between single-family home dwelling units and non-single-family home dwelling
units is higher than previous years.
Regarding the commercial and industrial projects, the largest permits were for the
Sportech project, the Town Office Park (in Mulvaney Point), and the Hutton and
Rowe plumbing project in Cascade Industrial Park.
Commercial
Residential Industrial
# of
Dwelling Permit Permit
Year Units Valuation Valuation
1998
1st
Half 114 $14,366,091 $5,418,553
Total** 289 $32,793,372 $22,651,632
1999
1st
Half 113 $14,440,961 $14,931,225
Total 205 $25,690,122 $18,821,937
2000
1st
Half 147 $18,811,247 $18,847,221
Total 284 $38,613,568 $30,945,290
2001
1st
Half 154 $24,594,856 $26,809,277
Total 256 $41,877,967 $48,014,406
2002
1st
Half 119 $21,146,079 $2,476,220
Total 244 $44,655,720 $11,103,711
2003
1st
Half 206 $33,913,584 $4,433,359
** Includes 60 Unit Guardian Angels Complex
March 19, 2003
Name
Address
City MN 55330
Sub: Cycled Air Conditioning Electric Rate
Dear Customer,
You are currently on our cycled air conditioning program. This program allows us to
interrupt your air conditioning for 15 minutes on and 15 minutes off, up to 6 hours a day
for a maximum of 200 hours per year. This program gives you the benefit of a reduced
electric rate on your air conditioner. Our power supplier has changed methods of
reimbursement on cycled air conditioning programs. Instead of a reduced energy rate
based on a separate metered consumption for your air conditioner, they have gone to a
fixed monthly rebate. We have elected to change our reimbursement to you as well.
Instead of the reduced energy rate on your air conditioner consumption, you will receive
a $30 credit spread over the 5 summer months; $6 a month credit on your monthly bill.
Depending upon your use of your air conditioner you may do better off financially
with the $30 rebate. The real benefit to this cycled air conditioning program is to
conserve power and delay the construction of additional power plants. By delaying
construction of additional power plants we can keep your rates lower, and help the
environment.
Because we will no longer need the electric meter on your cycled air conditioner, we
will be removing this meter.
Enclosed are brochures explaining our Energy Star Appliance Rebates, Cycled AC,
and $65 AC Tune-Up programs for air conditioners. These programs are specifically
designed to save you money and energy. Please feel free to call me at 441-2020 if you
have any questions or concerns.
Sincerely,
Bryan C. Adams P.E.
General Manager
Enclosures
March 21, 2003
Name
Address
Elk River MN 55330
Subject: Whole House Rate
•
Dear Customer,
You recently became an electric customer of ERMU. Because of the ability to
interrupt your electric water heater, you have a special electric rate. Your previous
electric supplier, Connexus Energy, and ERMU handle this special rate differently. The
attached sheet reflects Connexus Energy and ERMU's estimated annual electric costs for
an average household using the different rate structures.
ERMU does not offer a whole house rate. We do offer a water heater controlled off-
peak rate that will require separate metering. Per the attached example, the annual cost of
Connexus' whole house and off-peak water heating is $897.95 and $821.15 respectively.
The annual cost of ER'vRFs off-peak water heater control is $795.36. As you can see,
ERMU is more competitive but the water heater circuit in your house will require a
separate meter which we will pay to have installed at no cost to you.
If you find this an acceptable arrangement, please sign the second page of this letter
and return it to us in the self-addressed envelope. We thank you for your consideration in
this matter. If you have any questions about the above, please do not hesitate to call.
Best Regards,
Bryan C. Adams P.E.
General Manager
Enclosure
I agree to allow ERMU to install an electric meter on the electric water heater circuit
to measure the electric energy used by the electric water heater. This measured energy
will be used to calculate the electric thermal storage water heating credit. ERMU will
pay for all costs associated with the meter installation and associated wiring.
Signature Date
Address